work contract-construction

[Dalia Felix]

dear experts,

the ST rate for a 'builder company' is 4.944 % of gross value as per the new Rule 2A (ii). what is the advantage of it over the 'composition scheme'? In both the cases, material value is to be included and input credit of the ST paid to the sub-contractor is available. please clarify me

[DEEPAK SHARMA]

the ST rate 4.944% is already for those assessee who is working under Composition Scheme without Cenvat Credit

AI Summary

Service tax composition rate applies to builders operating under the composition scheme without cenvat credit, clarifying tax treatment. The lower notified composition rate for construction services applies to assessees operating under the composition scheme who do not claim cenvat credit; both the composition scheme and the notified rate require inclusion of material value in the gross taxable amount and allow credit for service tax paid to subcontractors.